For updates affecting this Division please see Part C0 Updates
Appropriations to and from trading stock
C3.801 Assets appropriated to trading stock
Where a chargeable asset (ie an asset whose disposal would give rise to a chargeable gain or an allowable loss) acquired by a person otherwise than as trading stock is subsequently appropriated by him for the purposes of his trade as trading stock (whether on commencement of trading or otherwise), the general rule is that he is treated as having sold the asset for its market value at the time of appropriation1. This gives rise to a chargeable gain or an allowable loss, and the amount to be brought into the computation of the profits of the trade in respect of the acquisition of the item of trading stock is that market value.
Assets appropriated to trading stock—electing to defer the charge
An alternative treatment is available if the taxpayer so elects2. For appropriations before 8 March 2017, it was possible to make the election no matter whether
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Web page updated on 17 Mar 2025 17:24